The Potential for Developing Organic and Non-Organic Rice in Bantul District, Special Region of Yogyakarta

Abstract

Rising awareness toward the effects of chemical substance on public health and environment has led to the initiation and the development of organic farming system. This research aimed at analyzing the financial feasibility and technical efficiency of the development of organic and nonorganic rice farming. The paper was conducted in Imogiri Subdistrict, Bantul District, which was purposively selected. The research utilized survey with 50 respondents which were selected using the method of simple random sampling. The analysis technique applied was descriptive and quantitative, using Cobb Douglass stochastic frontier production function. The result of the research visualizes that organic rice possesses higher level of income and profit than non-organic rice does. Financially, organic rice is feasible for further development with R/C value reaching 1.81 (>1). Furthermore, technically, organic rice shows promising efficiency with efficiency index reaching > 0.7. Finally, the paper suggests that the development of organic rice in Bantul District shall be continued since it provides not only financial benefit but also environmental benefit.